Few things cause more anxiety for SSI recipients than getting a letter from Social Security saying it's time for a redetermination. The fear of losing your benefits can be overwhelming—but a redetermination doesn't have to be stressful if you understand what Social Security is looking for and how to prepare. Here's your guide to getting through it smoothly.
In this article, we'll cover:
- What an SSI redetermination is and why Social Security conducts them
- The difference between a redetermination and a continuing disability review
- What Social Security will ask you about
- How to prepare your financial records
- Common reasons people run into trouble
- What to do if your benefits are reduced or stopped
What Is an SSI Redetermination?
A redetermination is a periodic review that Social Security conducts to verify that you still meet the non-medical eligibility requirements for SSI. This is not about whether you're still disabled—that's a separate process called a continuing disability review (CDR). A redetermination focuses on your financial situation: your income, resources, living arrangements, and marital status.
Social Security typically conducts redeterminations every one to six years, depending on how likely your circumstances are to change. Some are "scheduled" redeterminations that happen on a regular cycle, while others may be triggered by a change you reported—or that Social Security discovered through data matching with banks, employers, or other agencies.
You'll usually receive a letter in the mail telling you that a redetermination is happening and asking you to contact your local Social Security office or respond by a specific date. Sometimes redeterminations are conducted by phone, by mail, or through an in-person interview.
Redetermination vs. Continuing Disability Review
People often confuse these two reviews, and it's important to know the difference. A redetermination looks at your finances and living situation—are your countable resources still under $2,000 (or $3,000 for couples)? Is your income still within SSI limits? Have your living arrangements changed?
A continuing disability review (CDR) evaluates whether you're still medically disabled. This involves reviewing your medical records and may require you to attend a consultative examination. CDRs happen on their own schedule, typically every three to seven years depending on whether your condition is expected to improve.
You could face both reviews at different times, or even simultaneously. But the preparation for each is different. This article focuses specifically on the financial redetermination.
What Social Security Will Ask About
During a redetermination, Social Security will review several key areas. They'll want to know about your income from all sources—not just your SSI payment, but any other money coming in, including earnings from work, support from family members, in-kind income (like someone paying your rent), and any other benefits you receive.
They'll review your resources, which means they'll want to see your bank statements, typically for the past several months. They're checking whether your countable resources have exceeded the $2,000 limit at any point. They may also ask about other assets like additional vehicles, property, life insurance policies, or investments.
Social Security will also ask about your living arrangements. Where you live, who you live with, and whether someone else is helping pay for your food or shelter can all affect your SSI payment amount. If you live in someone else's household and they're providing food or shelter, Social Security may apply the in-kind support and maintenance (ISM) rule, which can reduce your payment.
How to Prepare Your Financial Records
The single best thing you can do is have your documentation organized before the redetermination begins. Gather your bank statements for at least the past 12 months—every account you have, including any accounts where you're a co-owner or have signatory authority. If you have an ABLE account, have those statements ready too (though ABLE funds up to $100,000 are excluded from the resource count).
Keep a record of any large deposits or unusual transactions and be ready to explain them. If you received a gift, insurance payout, tax refund, or any other lump sum, having documentation of what it was and how you spent it down will help. Social Security is looking for patterns and red flags, and clear documentation resolves questions quickly.
If you track your resources monthly—which Purple makes easy with its built-in tools—you'll already have a running record that shows you've stayed compliant. This kind of proactive tracking is the best possible preparation for a redetermination.
Common Reasons People Run Into Trouble
The most common issue is excess resources. Maybe you forgot about a savings account you rarely use, or a tax refund pushed your balance over $2,000 at the wrong time, or someone deposited money into your account without your knowledge. Any of these can trigger a finding of excess resources.
Unreported changes are another frequent problem. If you moved, got married, started working, or your living situation changed and you didn't report it to Social Security, the redetermination may uncover the discrepancy. Social Security expects to be notified of changes within 10 days, and discovering unreported changes can lead to overpayment calculations and benefit adjustments.
Some people also run into trouble with jointly held accounts. If your name is on a bank account with someone else—even if the money isn't yours—Social Security may count the full balance as your resource unless you can prove otherwise. This is why having a clearly separate, individual account for your benefits is so important.
What to Do If There's a Problem
If your redetermination results in a benefit reduction or suspension, don't panic. You have the right to appeal within 60 days of receiving the decision notice. If you appeal within 10 days, you can usually continue receiving your benefits at the current level while the appeal is processed.
During an appeal, you'll have the opportunity to provide additional documentation and explain any issues. Many redetermination problems are resolved at the first level of appeal—called "reconsideration"—when the recipient provides clearer documentation or context.
If you believe you were overpaid and Social Security asks for repayment, you can also request a waiver of the overpayment if repaying it would cause financial hardship or if the overpayment wasn't your fault. These requests are evaluated on a case-by-case basis.
The best way to handle a redetermination is to be prepared before it happens. Purple's checking account helps SSI recipients track their resources in real time, so when Social Security asks questions, you already have the answers.